House Plan

You have the option of renting your apartment out ‘as is’ which means without doing any house plan such as renovation or adding fixtures and furnishings, or you can do it up and charge a higher rent. The later option could cost you thousands of dollar, depending on the extent of house plan and you should only consider it if the expenditure can be recovered in three to four years.

For a house plan that involves a renovation budget of $20,000, to be recouped in four years, means that your monthly rental must be $400 above the market rate over that period. Not all tenants are willing to pay a premium over the market rate. Therefore, it’s important for you to consider the type of tenant you will be getting.

Thin about your target tenants. Do they need and appreciate your house plan? Those with apartments costing less than $100,000 should avoid renovations at all costs. All your tenant needs are the basics. If your apartment costs more than $200,000, you might want to consider renovations as an avenue to increase demand for your apartment, hence enhancing your chances of getting higher rent.

These days, there is plenty of apartment-for-rent supply in the market. So, if you’re looking to rent out your property, then renovate your place and include fixtures and furnishing. Its best if the tenant can move in with just a suitcase.

Some people are willing to pay a premium over the market rate if the apartment is in better condition than its counterparts. For instance, if the place comes with timber flooring and kitchen cabinets, they would consider paying $200 to $3000 more than the going market rate.

Units that are ready to be lived in generally attract more offers and this puts you in a position to pick your tenant. Apartments that are ‘tired’ do not attract many prospective tenants and this means you have to take what you can get.

For a house plan that involves furnishing your apartment, note that the recouping period is shorter. The return on investment for furniture is two to three years because its lifespan is only about five years. You should buy new furniture, as it does not cost much more than second-hand items. Bring the new furniture back to your house and send your current furniture to your tenant.

So, what theme should you go with? Remember that unique is good but the design must cater to the mass market. In other words, your apartment should not look weird.

When it comes to house plan, either renovations or furnishing, the general guideline is to spend money where it can be seen and appreciated. Fully furnished toilets and kitchens can be found everywhere. To make an immediate impression, put in, say, a big television, a nice sofa, curtains and lighting. All this will sell your living room.